Gold extends gains to a third session as inflation data looms

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Gold has added a third consecutive session of gains, against a backdrop in which investors are focused on upcoming inflation data. The precious metal tends to react strongly to these releases, since they shape expectations around interest rates and, in turn, the relative appeal of an asset that pays no yield.

At the same time, Comex futures markets saw both gold and silver settle lower, which might seem contradictory at first glance. In practice, it's not unusual for intraday moves or specific contracts to diverge from a multi-session trend: the gold market has several layers, from spot to futures, and they don't always move in exact lockstep every single day.

What the market is watching in inflation data

When people say inflation prints are in focus, they mean that any surprise, higher or lower, in price data can shift expectations around monetary policy. Inflation that proves stickier than expected tends to raise doubts about rate cuts, while a moderation can reinforce the opposite view.

Gold has historically been viewed as a haven in moments of uncertainty, both economic and geopolitical. Its recent behavior is worth understanding as part of that pattern, while keeping in mind that past performance is no guarantee of what will happen in coming sessions.